Yesterday morning, we noted that the earnings results weren’t kicking off the week on a positive note. Thankfully, that trend changed since the close yesterday. Not only have results in Europe, and more importantly the reactions to those earnings, been encouraging, but here in the US the tone has been positive as well. Of the nearly 60 companies that have reported since the close yesterday, over two-thirds (67%) have managed to exceed EPS forecasts and an impressive 62% have topped revenue estimates.
In economic data today, the focus will be on housing with the FHFA House Price Index at 9 am eastern and then Existing Home Sales at 10 am. Already this morning, though, earnings from Pulte (PHM) were positive and the stock is trading up 1.5% on the results. Also at 10, we’ll get the July release of the Richmond Fed and see if that will show the same type of rebound that we saw in the Empire and Philly Fed Manufacturing reports.
Read today’s Morning Lineup to get caught up on news and stock-specific events ahead of the trading day including a discussion of earnings results from the US and Europe overnight and economic data out of Japan.
As noted in this morning’s commentary of the Morning Lineup, the dollar is trading higher for the third straight day today and appears to be showing signs of breaking out of its May-July downtrend. With the dollar’s strength, we would expect to see companies with international exposure underperforming. As shown in the chart below, though, that hasn’t been the case in the last few days. While our index of S&P 500 Domestics (red line) is about 1% off its recent high, the Internationals Index (blue line) has been moving sideways and remains right near its highs.
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